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Similar boat as you. Hoping our brothers and sisters who have crossed to the other side can opine.
It sounds like it might be an effort/motivation issue rather than an ability issue? Either way I don't think being a good banker is a prerequisite for being a good investor. I will say that if you are bored with some of the tasks you are being asked to do in banking there is a possibility you might not like private equity either. I have found at the junior levels there is a significant amount of overlap with the analysis/processing/admin work you will be expected to do.
To me the exciting stuff in PE is everything outside of that analysis/processing/admin work such as talking to management teams, structuring deals, strategy post-close, M&A/addon pipeline development, fundraising and portfolio construction at the fund level (if you are lucky enough to be included in those types of conversations at your firm). All that to say you have to crush the boring processing work to get to do the fun stuff, its the cost of being in the business.
if you do minimum modelling( excel) as analyst in IB coverage for your first two years, does that affect greatly whether you will excel in PE? since you're not as efficient with modelling, excel formatting, working out nuances if theres a ref error or circular error.
It will probably just be a few more late nights when you first start but you can plan ahead. For example when I first started I would write out an outline of every build and the inputs/drivers and review with my VP. It makes the actual modeling very efficient as you agree on everything upfront and the rest is just pure execution on what you already aligned on. Then it will be mostly tweaking assumptions and be much more manageable. Others may have better strategies but that worked for me and really only takes an hour or two and then a 30 min meeting.
Modeling is important and a decent part of the job and you need to be able to accurately use what you learn in diligence to reflect realistic scenarios for the business but there is a lot more to private equity. I have found I spend as much if not more time doing diligence on the market, competitors, product than I do on the company specific diligence and the model.
This might vary a lot depending on the firm strategy, sector focus, and partner investing style. Just sharing my experience.
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i can relate on boredom and cultural fit. it definitely does impact motivation to really care past doing average work quality. do your associates run the modelling usually?
i also wonder if being good at IB means you're good at PE (transferability of excel/ppt skills) or theres a huge learning curve on the analysis side
In all honesty and I think most of the people who are in PE now after the usual few years in banking will agree, being a good banker does not necessarily mean you will be a good investor.
Being young and at the early stage of your career are clearly a plus as you have not been completely moulded by the IB culture and way of approaching and doing things, you will certainly adapt once you are on the other side of the fence. Although both bankers and investors work together on certain aspects of a transaction, being a banker or an investor are very different in practice. I have not been long enough on the buyside (only 2.5 years) but I have seen a couple of senior individuals who came on the buyside at Senior Director or MD level and you see the difference between them and a Director or MD who has been on the buyside for a large part of her/his career. Very different ways to approach transactions, risk mitigation, DD, finding upsides etc... In fact and far as I am aware, not a lot of people want to work with those two individuals as they still have very much this banker mentalities that you try to escape.
Fully agree with Wallstreetfool, the most exciting things in PE are not the stuffs your advisors see. From my perspective, it lies from the origination, talking to management teams but also in the structuring and shaping the strategy in order to help the management growing the company. That's what is the most rewarding and seeing a deal from origination to exit is awesome. This is just for the transaction side but working in PE comes with other interesting stuffs such as fundraising or portfolio strategy and value creation.
Anyway, to come back to your question, I would not worry too much, sometimes IB job can be highly unglamorous but it also comes down to the team you are in. If you are good, you will find something in the buyside but if you wish to stay in banking, it is just a matter of time before you are given more interesting stuffs.
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